Ferguson to Acquire FloWorks for $1.6B, Expanding TAM to $400B and Adding Technical Flow Control Capabilities
FERG is trading near its 52-week low of $207.64 (9.5% above the low).
Summary
Ferguson announced a definitive agreement to acquire FloWorks for $1.6 billion, expanding its total addressable market to $400 billion and adding technical flow control capabilities in high-growth industrial end markets.
Key Events · M&A and Partnerships · FERG
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Acquisition of FloWorks
Ferguson entered into a definitive agreement to acquire FWI Holdings, Inc. (FloWorks) for an enterprise value of approximately $1.6 billion in cash.
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Financial Impact
FloWorks generated 2025 revenues of ~$1 billion. The acquisition multiple is ~10x LTM Adj. EBITDA including expected synergies of ~$45 million, and is expected to be immediately accretive to adjusted EPS.
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Strategic Rationale
The deal expands Ferguson's total addressable market to $400 billion and adds technical capabilities in valves, automation, and flow control, with exposure to high-growth end markets including datacenters, semiconductors, and pharmaceuticals.
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Financing and Leverage
J.P. Morgan is providing committed financing. Ferguson expects to remain within its targeted net debt to adjusted EBITDA range of 1–2x upon closing.
Analysis · FERG · Trade & Services
Ferguson is acquiring FloWorks, a leading distributor of highly technical valves and flow control solutions, for $1.6 billion in cash. The deal expands Ferguson's total addressable market to $400 billion and adds exposure to high-growth end markets like datacenters, semiconductors, and pharmaceuticals. FloWorks generated $1 billion in 2025 revenue, and the acquisition is expected to be immediately accretive to adjusted EPS, with significant revenue and cost synergies. The transaction is expected to close in Q3 2026, funded through committed financing from J.P. Morgan, and will keep Ferguson within its targeted leverage range. This is a transformative deal that meaningfully enhances Ferguson's industrial platform and growth profile.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 40.7% of the 388 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.42%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FERG was trading at $227.30 on NYSE in the Trade & Services sector, with a market capitalization of approximately $44.1B. The 52-week trading range was $207.64 to $271.64. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.